Sample Exam 4 Answers
If you really want to see the answers, then peek below.
| 1. c (this is true for a single-price monopolist) |
| 2. d |
| 3. c |
| 4. b |
| 5. d |
| 6. d |
| 7. a |
| 8. d |
| 9. d |
| 10. b |
| 11. a) Both go High b) Firm B will go Low when Firm A commits to High. If firm B commits first, they'll go High while A will then choose Low. c) There are two NE: (H,L) and (L,H) d) The pareto optimal outcome is the lower right box with A going L and B going H. |